You mean this article about debt writeoff?Glencore has agreed to write off $5.6bn of debt to safeguard a joint venture in the Democratic Republic of Congo, which is set to become the world’s biggest producer of cobalt, a battery material. The debt-for-equity swap announced after the market close on Tuesday will plug a capital shortfall at the Kamoto Copper Company and end a dispute with Gcamines, the DRC’s state-owned mining company. Gcamines launched legal action in April to dissolve KCC and take control of its mining licences. It claimed Glencore had failed to reduce billions of dollars of intercompany loans, reducing KCC’s ability to pay dividends. The heavy levels of debt carried by mining companies has become a heated issue in the DRC, where the government is also seeking greater share of industry profits. For its part, Glencore has invested heavily in the DRC, including KCC where it has introduced a new processing technology. KCC is one of Glencore’s most important growth assets, expected to produce 300,000 tonnes of copper and 34,000 tonnes of cobalt in 2019. It is 75 per cent owned by Katanga Mining, a Glencore subsidiary listed in Canada, and 25 per cent by Gcamines. The agreement announced on Tuesday by Katanga will see KCC’s debt fall from more than $9bn to $3.45bn and the interest rate on the intercompany loans reduced. In addition, Katanga has also agreed to make a one-off payment to Gcamines of $150m relating to historical commercial disputes as well as $41m to cover expenses incurred as part of an exploration programme. Gcamines will also be freed of an obligation to repay $57m of contractor costs and to replace or provide financial compensation for mineral reserves valued at $285m. In return Gcamines will end its legal action. “Glencore is pleased that this matter has now been resolved and looks forward to supporting KCC’s closer partnership with Gcamines as the parties work together to ensure that the joint venture reaches its full potential for the benefit of all stakeholders,” the company said in a statement. The deal is expected to close in two weeks. Analysts also welcomed the deal, which solves one of the legal problems facing Glencore in the DRC and have caused its shares to underperform this year. “The settlement appears to solve one of four DRC related risks for Glencore and improves relations with an important stakeholder,” said analysts at JPMorgan. “Glencore’s consolidated net debt does not change as a result of the recapitalisation and in practical terms we believe the key impact will be slower upstreaming of cash from KCC to Glencore,” they added. Shares in Glencore rose 2.3 per cent to 392p on Wednesday, one of the biggest risers in the FTSE 100. Alongside other international mining companies, Glencore is fighting the government of Joseph Kabila over a new mining code that will impose higher royalties and taxes. At the same time, Glencore’s ex-partner in the DRC, Israeli businessman Dan Gertler, is suing the company over unpaid royalties, while a former shareholder in another of its DRC mines is seeking billions of dollars in compensation. Glencore could face a bribery probe by the UK’s Serious Fraud Office over its ties to Mr Gertler, who was sanctioned by the US in December for “opaque and corrupt mining and oil deals” in DRC Unlike its peers, Glencore has invested heavily in central Africa over the past decade. Its deals with Mr Gertler and Gcamines have helped Glencore become the world’s third-largest copper producer and the top supplier of cobalt, which is needed in the lithium-ion batteries that power electric vehicles. “We believe that this is more than just a good outcome for Glencore with regards to this specific issue. It is also a positive signal regarding the DRC more generally,” said Bernstein analyst Paul Gait. “Firstly, it shows that Gcamines /the Congo are not just out to expropriate assets. Secondly, it shows that appropriate commercial negotiation can reach positive outcomes in that jurisdiction.”